I died the first time and had to switch up my Monk skills to things that were high damage (AoE not necessary, since Fuad is the only enemy in the room) and preferably included stuns. I'm not sure if his crazy fast healing is an active or a passive.

I ran in, did a blinding flash, followed by a quick Exploding Palm, Wall of Light, and Seven-Sided Strike in that order, then just clicked Crippling Wave (Mangle) like a madman until he went down.

Also, my Templar has Onslaught, but in the fight, I have no idea if he used it.

I just did it on my level 15 barb, used Bash with my Clobber rune, Hammer of the Ancients with the Smash rune, Ground Stomp with the Deafening Crash rune, Revenge and Weapon Throw. Make sure you stun in whenever he gets close, it takes some luck with your stun procs on your Bash, but it should work if you don't let him heal off of you too much.

lvl 17 wizard - took a few tries to get the mechanics down (if you are getting low on health just click on the exit to leave and then try again). I was able to get him down using Ice Armour, Diamond Skin (with crystal shell) , and wave of force. I put on the Ice Armour and Diamond skin and Ice armor before entering. Once inside use wave of force to blast him away, then i used magic missile (with charge blast) or ray of frost (with frost blast) to start to kill him. must keep on the Armour and diamond skin (I think it prevents him from eating you if he gets to close as others have pointed out in the post), then move around, keep blasting him away, he sometimes gets frozen keep Armour on and blast away, rinse repeat and get the timing down. Good Luck.

For anyone who is having trouble with him I beat him using a pretty cheap tactic.

I'd freeze him get a few hits in then run away and leave the cellar. If you come back after the cool down time he is still hurt. It took me a couple times going back and fourth. But after 15 min of not beating him I ended up just doing this.

All these replies are about how to kill him, how amusing. OP obviously asked how to locate him, not to beat him.

Directed at OP, I haven't gotten far enough to encounter this place yet, but I'm quite sure it's a random spawn, almost everything is randomspawn unless it's quest related, and then it can still be in different areas.